Stanley Black & Decker (SWK) COVID Case on Misleading

The defendant has requested the court to dismiss the case.

D. Connecticut

Court

3:23-CV-00369

Case number

10/28/2021

Class period Start

07/28/2022

Class period End

05/23/2023

Lead Plaintiff motion deadline

Stanley Black & Decker stated significantly slower demand & sharp projection cut.
$SWK price declined by over 16%, damaging investors.
Investors suspect $SWK and its officers of misleading.

On July 28, 2022, Stanley Black & Decker (SWK) issued financial and operational results for Q2 2022, and the press release stated that “the macroeconomic environment—including inflation, rising interest rates and significantly slower demand in late May and June—drove the majority of the challenges we faced this quarter”, “the softening of the demand environment accelerated rapidly during the last portion of the quarter”, and that “net sales for the quarter were … partially offset by lower volume (-13%).”.

On this news, the $SWK price declined by over 16%, damaging investors.

The financial media and analysts were quick to react to the news, with analysts from Mizuho Financial Group stating that the massive guidance cut “truncates anything that occurred in the quarter”, adding “this is significantly worse than we could have imagined.”

Taking all representations and appeared results into account, Investors have reasons to suspect $SWK and its officers of misleading statements and representations.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

07/28/2022

Filing date

03/24/2023

Lead Plaintiff Deadline

05/23/2023

Judge

Hon. Kari A. Dooley